Industry Reports

Published on: 07/26/2019
Capstone Headwaters’ Q2 Pharmaceutical Outsourcing Executive Summary discusses the active M&A market in the industry, fueled by pressures faced by pharmaceutical companies to accelerate drug development and displace profit drops.  To learn more about the content of the report or Capstone Headwaters’ Healthcare practice, please reach out to Eric Williams.  
Published on: 07/11/2019
Capstone Headwaters’ Q2 2019 Behavioral Healthcare Services Coverage Report discusses how the industry continues to grow, driven by the destigmatization of mental health, an influx of care options, and greater political awareness around mental health.
Published on: 06/06/2019
A historically tight labor market where job openings consistently outpace hiring coupled with an aging US population and greater healthcare utilization continues to bolster demand as well as deal activity within the Healthcare Staffing sector. The number of individuals employed in healthcare is projected to grow 18% from 2016 to 2026, faster than the average for all other occupations, according to the Bureau of Labor Statistics. 
Published on: 05/23/2019
The global Medical Device Outsourcing market reached a reported$94.2 billion in 2018, according to Grand View Research, and has enjoyed solid growth over the last decade as a result of the aging population and escalating prevalence of chronic diseases. The increasing trend among original equipment manufacturers to outsource both in terms of volume and range of services to third-party providers, continuing advancements in technology yielding improved patient outcomes, and increasing healthcare utilization have also driven steady growth in the MDO industry.
Published on: 05/08/2019
The well-managed, nonopportunistic use of outsourcing to support drug development and, in particular, the development and manufacturing functions, allows sponsor-innovators to take advantage of specialist expertise, resulting in higher compliance and productivity levels, shorter turnaround and set-up times, access to difficult-to-find expertise, shorter completion dates, and lower overall costs.
Published on: 03/11/2019
The Behavioral Healthcare Services industry experienced a banner year of merger and acquisition (M&A) activity in 2018. The number of transactions increased 59% year-over-year to reach a historic industry high of 97 announced or closed transactions. In addition to volume, two of the largest disclosed deals on record occurred. In a go-private bid, Centerbridge Partners agreed to acquire all outstanding shares of mental and behavioral disabilities services provider Civitas Solutions, Inc.(NYSE:CIVI) for $17.75 per share in cash.
Published on: 03/06/2019
Amid the growing economy and the tight labor market, the Healthcare Staffing industry has flourished. Healthcare added an impressive 346,000 jobs to the US economy in 2018, a 21.8% increase from the 284,000 gained in 2017, according to the US Bureau of Labor Statistics. The US is projected to see a shortage of up to 120,000 physicians by the year 2030, according to the Association of American Medical Colleges.
Published on: 02/25/2019
Merger and acquisition activity in the Pharmaceutical Outsourcing industry remained strong in 2018, with 63 announced or closed transactions compared to 57 in 2017. Factors driving activity include robust drug pipelines, increasing complexity of trials and drug manufacturing, and more stringent regulatory scrutiny. Despite an active M&A market over the past several years, the sector remains highly fragmented. It’s no secret that Big Pharma would prefer to partner with fewer outsourced providers.
Published on: 02/08/2019
In our third quarterly edition of our Institutional Industry Report on the Bio/Pharma Outsourced Services (BPOS) sector, we focus on the BPOS industry’s opportunities to support the development and manufacture of cannabinoid-based drugs. We hasten, however, to dampen any prurient interest in this topic by emphasizing that these drugs have no “mind-altering” effects and will not be available through the marijuana dispensaries popping up like flowers in the spring. 
Published on: 01/18/2019
One of the hurdles consistently facing medical device original equipment manufacturers is the significant costs and length of time to design, develop, and secure regulatory clearance for a new product. According to ScienceDirect, a platform for peer-reviewed scholarly literature, the average time-to-market for a medical device falls between three to seven years at a cost of $94.0 million for a high-risk, novel medical device.